The amount exceeds the amount withdrawn in the whole of 2019, of R$ 44.5 billion. The output speed is also a record and exceeds the daily average of 2008.
Until March 4, foreigners withdrew R$ 44.8 billion from the Stock Exchange in 2020. The amount exceeds the amount withdrawn throughout 2019, R$ 44.5 billion, not counting share offerings (IPOs and follow-ons).
The exit also exceeds and is the biggest historical series of B3 since 2008. In values adjusted for inflation, R$ 44.6 billion were withdrawn in the year of the financial crisis. The exit speed is also a record, around R$ 1.05 billion per trading session.
Considering initial public offerings (IPOs) and subsequent public offerings (follow-ons), the foreign balance is negative at R1TP4Q 33.4 billion this year. Considering these operations, in 2019 the outflow was R$ 4.7 billion.
Coronavirus and the impact on the economy
The reasons for foreigners to withdraw money from Brazil and other emerging countries are mainly due to the great fears of investors in the face of the economic impact of the coronavirus. Still, the slowdown of the global economy and delay in the progress of administrative and tax reforms.
The exit contributes to a higher dollar rate. On Thursday (5), the American currency hit its new nominal record, reaching R$ 4.653. This Friday (6), the quotation drops by 0.5%, to R$ 4.63 around 1:10 pm. The Stock Exchange has the second trading session followed by a sharp drop, with a retreat of 3.8%, to 98,357 points, its lowest level since August 28, 2019.
Brazil's country risk rose by 101TP3Q to 142 points as measured by the five-year CDS (Credit Default Swap), a type of contract that works as a thermometer of investor confidence in relation to economies. It was the highest level since October 2019, before the pension reform was approved in the Senate.
Last Thursday (5), the Brazilian CDS rose by 14.4%. It was the highest daily percentage increase since the so-called Joesley Day, on May 18, 2017. On that day, information was made public that Joesley Batista had recorded a conversation with then-president Michel Temer (MDB). At the time, country risk rose by 29%, to 265 points.
The indication of the rising CDS is that investors are fearing for the country's financial future; if it falls, the message is the opposite: it signals that there has been an increase in confidence regarding the country's ability to settle its debts.
